gemIntertemporal_1_2: An Example of a 1-by-2 Intertemporal Equilibrium Model

In GE: General Equilibrium Modeling

An Example of a 1-by-2 Intertemporal Equilibrium Model

Description

An example of an intertemporal equilibrium model with one type of commodity (i.e., product) and two types of agents (i.e., a firm with an AK production function and a consumer).

Usage

gemIntertemporal_1_2(...)

Arguments

...	arguments to be passed to the function sdm2.

Examples

eis <- 0.5 # the elasticity of intertemporal substitution of the consumer
rho.beta <- 0.97 # the subjective discount factor of the consumer
alphaK <- 1.1 # the parameter of the AK production function

np <- 5 # the number of economic periods

n <- np # the number of commodity kinds
m <- np # the number of agent kinds

names.commodity <- paste0("prod", 1:np)
names.agent <- c(paste0("firm", 1:(np - 1)), "consumer")

# the exogenous supply matrix.
S0Exg <- matrix(NA, n, m, dimnames = list(names.commodity, names.agent))
S0Exg[paste0("prod", 1:np), "consumer"] <- 100

# the output coefficient matrix.
B <- matrix(0, n, m, dimnames = list(names.commodity, names.agent))
for (k in 1:(np - 1)) {
  B[paste0("prod", k + 1), paste0("firm", k)] <- 1
}

dstl.firm <- list()
for (k in 1:(np - 1)) {
  dstl.firm[[k]] <- node_new(
    "prod",
    type = "Leontief",
    a = 1 / alphaK,
    paste0("prod", k)
  )
}

dst.consumer <- node_new(
  "util",
  type = "CES", es = eis,
  alpha = 1, beta = prop.table(rho.beta^(1:np)),
  paste0("prod", 1:np)
)

ge <- sdm2(
  A = c(dstl.firm, dst.consumer),
  B = B,
  S0Exg = S0Exg,
  names.commodity = names.commodity,
  names.agent = names.agent,
  numeraire = "prod1"
)

ge$p
ge$z
ge$D
ge$S
growth_rate(ge$D[, m])
(rho.beta * alphaK)^eis - 1

GE documentation built on Nov. 8, 2023, 9:07 a.m.